Buying a house is one of the most exciting things that you can do. But let’s face it, the property will always be one of the most expensive purchases you ever make and the most stressful. You think that buying the house is the hard part, but once you are in it, you have to think about the time you come to the end of your mortgage deal and then do it again when going to remortgage your home. This is important to ensure that you get the best possible deal, and that you don’t pay any more per month than you need to. So what do you need to think about when it comes to a remortgage application? Here are some of the things to think about.
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1. How healthy does your bank account look right now?
One of the first things to think about would be your bank account and how healthy it looks right now? The things to think about are:
- Whether you are using an overdraft facility and how far in deficit you are within it.
- Look out for any gambling and betting transactions on your bank statement. Lenders are not keen on these things. It might be worth giving up this hobby a few months before your application.
- Do you have much credit in your account? The more credit you have in the account, the less risky you look.
- Look at the incoming and outgoing transactions. If there are lots of transactions for things like Paypal, for example, where you may innocently be selling stuff online, make sure you can provide a record for it.
- Keeping an eye on these things will help you be in the best possible position to put in your remortgage application.
2. How long have you been at your job?
Another thing to think about would be how long you have been in your job. If your position hasn’t changed for more than six months, then there shouldn’t be any issues, but if you have recently changed jobs, you might want to hold off applying until you reach the six-month mark.
3. What’s the value of your property?
The property’s value matters for the remortgage just as much as it would have done for your original application, especially if you have made some changes to the property or are hoping to borrow more.
4. Is there anything that could hold you back?
Lastly, there are a few things that could be holding you back when it comes to your applications. These include:
- Not providing proof of income – You will likely need to give paycheques or invoices if you work for yourself.
- Debts – Even if you are remortgaging, any outstanding debts on loans or credit cards might go against you.
- Your credit score – Any mortgage company will look at your credit score and history and investigate any records that might be there.
In fairness, most of these things are very similar to what you might have considered when you were applying for your first mortgage. Let’s hope these reminders will ensure you can secure the best possible deal when it comes to change.
Remortgage FAQs
Below are some frequently asked questions about remortgages.
A remortgage is when you switch your mortgage to a new lender. This could be for a number of reasons, such as wanting to get a better deal on your interest rate, or wanting to borrow more money against your property.
The process of remortgaging is relatively straightforward. You’ll need to compare mortgage deals to find the best one for you, and then apply for the mortgage with the new lender.
There are a few costs associated with remortgaging, such as arrangement fees and valuation fees. However, it’s important to compare the overall cost of the mortgage, rather than just the upfront costs.
There are a number of benefits to remortgaging, such as the opportunity to get a better deal on your interest rate or to borrow more money against your property.
There are a few risks associated with remortgaging, such as the possibility of ending up with a higher interest rate if you don’t shop around for the best deal. However, as long as you’re aware of the risks and compare mortgage deals carefully, remortgaging can be a great way to save money on your mortgage.
A remortgage is when a borrower switches their mortgage to a new lender. This could be for a number of reasons, such as wanting to get a better deal on their interest rate, or wanting to borrowing more money against their property. For example, if you took out a mortgage three years ago and rates have since fallen, you may be able to remortgage to get a better deal. Or, if your property has increased in value, you may be able to remortgage to borrow more money against it. There are a few costs associated with remortgaging, such as arrangement fees and valuation fees. However, it’s important to compare the overall cost of the mortgage, rather than just the upfront costs. Remortgaging can be a great way to save money on your mortgage, but it’s important to compare deals carefully and be aware of the risks before you switch.
The process of remortgaging is relatively straightforward. You’ll need to compare mortgage deals to find the best one for you, and then apply for the mortgage with the new lender. There are a few costs associated with remortgaging, such as arrangement fees and valuation fees. However, it’s important to compare the overall cost of the mortgage, rather than just the upfront costs. Remortgaging can be a great way to save money on your mortgage, but it’s important to compare deals carefully and be aware of the risks before you switch.
Use can use Lending Tree’s refinance calculator to get free quotes from remortgage lenders that calculate how much you would owe and ultimately save. Check it out here.
Conclusion
Remortgaging can be a great way to save money, but it’s important to compare deals and understand the risks before making any decisions. With a little research, you can find the best remortgage deal for your individual needs.
